Asia’s oldest stock exchange BSE said that it has put Veronica Productions Ltd under the third stage of the graded surveillance measure (GSM) framework. The bourse had imposed trading curbs on Veronica Productions Ltd (VPL) after Sebi issued directions with respect to listed shell companies, including VPL, alleged to have indulged in tax-related violations and other discrepancies.
Veronica Productions Ltd shall be placed under “Stage 3” of graded surveillance measure (GSM) framework effective on May 10, 2023, BSE said in a circular on Wednesday. Further, trading in the securities of the company shall continue to remain suspended until further notice, the bourse added. GSM framework has been made to check any abnormal rise in stock price not commensurate with the company’s financial health.
The measures involve steps such as placing securities in trade to trade category, requiring the entities to put in additional amount as surveillance deposit that can be retained for an extended period and freezing of price on the upper side of trading in shares. The framework has six stages with surveillance action defined for each stage.
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According to the exchange, securities placed under the GSM framework would be reviewed on a quarterly basis and securities not meeting the inclusion criteria would be moved out of the framework.